ATTACK ON SALES TAX

Hawera Star, Volume LII, 1 February 1933, Page 9

ATTACK ON SALES TAX

SUGGESTED PLAN OPPOSED FURTHER BURDEN INTOLERABLE CHAMBER OF COMMERCE VIEW. STATE ECONOMY WANTED. (By Telegraph—Press Association.) WELLINGTON, Eeb. 1. The opposition of the commercial community- to the sales tax and to any increa.se in taxation falling on business was expressed this morning by Mr Burgess, president of the Associated Chambers of Commerce. “The statement of the .Government’® intention to introduce a sales tax has been received by the commercial community with consternation,” he said. “Following the inexcusable act of the Government in creating the new exchange rate, this further tax imposition is more than trade can withstand. Private trade is in grave distress and has little to hope- for in its fight against the budgetary policy- that is spelling ruin. “Apparently the Government has not yet learned there is at least an economic law left with which it cannot interfere, and that is' the law of diminishing returns,” continues Mr Burgess. He says a sales tax will mean nothing hut a higher cost of living and disruption of business. He refers to Australia, where the tax is so thoroughly undesirable that the Government already- has promised the commercial community it will be the first tax to he removed.

“However, the merits or demerits' of the sales tax as a system is not a matter for debate.” continues Mr Burgess. “The simple fact is that trade and commerce in New Zealand 1 cannot carry any- further burden of' any sort or description.” He proceeds to outline the financial position and say-s : “The only way the Government can hope to find a, way out of the financial maze into which it has got itself is first of all to relea.se the rate of exchange, thereby relieving itself and the country from the enormous financial drain entailed by an artificial increase and then to carry out the most drastic economies in expenditure on a scale not hitherto attempted and! involving. the closing of departments 1 and the elimination of services. Trade must be given an opportunity to recover. It can carry no more burdens.”